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IMMEDIATE RELEASE

Release No: 271-01June 18, 2001

RUMSFELD CREATES TWO NEW MANAGEMENT COUNCILS

Secretary of Defense Donald Rumsfeld has formed two new internal management committees that will recommend ways for the Department to improve business practices and transform the U.S. military into a 21st Century fighting force.

The Senior Executive Committee will function as a business board of directors for the Department. It will be made up of Secretary Rumsfeld, Deputy Secretary of Defense Paul Wolfowitz, Under Secretary of Defense for Acquisition, Technology and Logistics Edward C. "Pete" Aldridge, and the Service secretaries. Secretary of the Army Thomas E. White, Secretary of the Navy Gordon R. England, and Secretary of the Air Force James G. Roche will use their unique qualifications as experienced business leaders to recommend changes to the Defense Department's business practices.

The second of the two management teams, the Business Initiative Council, will be comprised of the Service secretaries and headed by Aldridge. The Service secretaries will recommend good business practices and implement cost savings that could offset the funding requirements for personnel programs, infrastructure recapitalization, equipment modernization and transformation initiatives. These Service-oriented initiatives will encourage the military branches to explore new money-saving programs with the added incentive of being able to use that money saved for other programs within the parameters of reprogramming laws.